ERNAKULAM, NOVEMBER 10: A rather packed courtroom on Monday saw Justice M.A. Abdul Hakhim navigate through a long list of impleadment applications arising from the high-profile sinking of the cargo vessel MSC ELSA-3 off the Kerala coast. The hearing stretched longer than usual, with advocates frequently rising to emphasise how the tragedy had affected their clients cargo owners, insurers, fishermen, and several others who said the sea accident had swept away their livelihoods.
The judge, after hearing both sides patiently, delivered an order that effectively brings a wide range of claimants inside the fold of the ongoing limitation-fund proceedings.
Background
The ship MSC ELSA-3 sank on 25 May 2025, roughly 14.6 nautical miles off the Kerala coastline during its voyage from Vizhinjam to Kochi. Soon after, multiple admiralty suits were filed by cargo owners and, separately, by the State of Kerala, alleging large-scale loss and environmental damage.
In response, the vessel owner, bareboat charterer, and operator approached the High Court seeking to constitute a “limitation fund” under the Merchant Shipping Act. This fund essentially caps their financial liability according to a formula linked to the vessel’s tonnage. Once this fund is constituted, all claims must be settled from that single pool rather than from the owner’s other assets.
Following newspaper notices inviting claims, 47 impleadment applications were filed by people wanting to join the proceedings.
Court’s Observations
The courtroom atmosphere shifted when Justice Abdul Hakhim began dissecting the arguments one by one, often looking down at the statute book to clarify how Section 352C works. He noted that the entire provision dealing with the constitution of the limitation fund functions as a self-contained code.
The bench observed,
"Section 352C contemplates consolidation of claims and does not require every claimant to file a separate suit. Anyone with a claim falling under Section 352A can come directly into the limitation-fund proceedings."
He also pointed out that the law bars future admiralty suits once the limitation fund is created, reinforcing the need to gather all claims before the same bench.
On the objections raised by the plaintiffs primarily that many applicants had not yet filed independent suits the court was unambiguous:
The bench observed, "Merely because a person has not instituted a suit does not disqualify him if he has a legitimate claim connected to the sinking."
The judge further drew a comparison with company liquidation proceedings, noting that the purpose of the limitation fund is similar bringing all claimants together and distributing the available amount proportionately.
However, the court drew a firm line when it came to associations and individuals who did not show any actual claim. The judge stated that while they may have a general interest in the incident, they did not meet the statutory definition of persons interested.
Decision
After evaluating each category of applicants, Justice Abdul Hakhim delivered a clear breakdown:
Applications Allowed:
- Cargo owners who had goods on board the sunken vessel
- Insurance companies who settled cargo claims and sought recovery through subrogation
- Fishermen, boat owners, and others who claimed actual loss due to debris, damaged equipment, or long disruption to livelihood
- Individuals who stated specific claims but have not yet filed suits (still within limitation period)
Applications Dismissed:
- Associations of fishing boat owners that did not disclose any direct claim (I.A. Nos. 5, 10, and 16)
- One fisherman applicant who did not specify his claim (I.A. No. 8)
The bench observed,
"Only those who can claim from the limitation fund qualify as persons interested under Section 352C."
Finally, the court directed the Registry to incorporate all newly impleaded defendants into the case records in the order of their application numbers.
And with that, the judge concluded the matter at least for the day bringing some clarity to dozens of anxious claimants waiting to be heard in the aftermath of the MSC ELSA-3 disaster.
